This article will reflect on the compensation paid to Photis Pascali who has served as CEO of PyroGenesis Canada Inc. (CVE:PYR) since 2006. This analysis will also assess whether PyroGenesis Canada pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Photis Pascali Compare With Other Companies In The Industry?
According to our data, PyroGenesis Canada Inc. has a market capitalization of CA$562m, and paid its CEO total annual compensation worth CA$257k over the year to December 2019. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at CA$240.0k constitutes the majority of total compensation received by the CEO.
On examining similar-sized companies in the industry with market capitalizations between CA$264m and CA$1.1b, we discovered that the median CEO total compensation of that group was CA$2.0m. Accordingly, PyroGenesis Canada pays its CEO under the industry median. What's more, Photis Pascali holds CA$248m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
On an industry level, roughly 70% of total compensation represents salary and 30% is other remuneration. It's interesting to note that PyroGenesis Canada pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at PyroGenesis Canada Inc.'s Growth Numbers
PyroGenesis Canada Inc. has seen its earnings per share (EPS) increase by 4.3% a year over the past three years. Its revenue is up 87% over the last year.
It's hard to interpret the strong revenue growth as anything other than a positive. And in that context, the modest EPS improvement certainly isn't shabby. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has PyroGenesis Canada Inc. Been A Good Investment?
We think that the total shareholder return of 578%, over three years, would leave most PyroGenesis Canada Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
As we noted earlier, PyroGenesis Canada pays its CEO lower than the norm for similar-sized companies belonging to the same industry. However, shareholder returns are rock solid over the past three years, and that’s undoubtedly a good sign. As a result of the juicy return to investors, CEO compensation may well be quite reasonable.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 6 warning signs (and 2 which are significant) in PyroGenesis Canada we think you should know about.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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